125 African tech startups received a total amount of funding in excess of $185.7 million (Sh19B) in 2015, according to a report compiled by Disrupt Africa.
South Africa, Nigeria, and Kenya proved investors’ favoured destinations in 2015; with 36 per cent of the startups that raised funding based in South Africa, 24 per cent in Nigeria, and Kenya in third place with 14.4 per cent of deals.
The top three highest amounts of funding also went to these three locations. South African startups raised in excess of US$54,568,000 (Sh5.7B) throughout the year; Nigerian startups received over US$49,404,000 (Sh5.1B); and Kenyan startups brought home over US$47,365,000 (Sh4.9B).
Kenya’s solar power start-up M-Kopa accounted for over 90 percent of financing that flowed towards Kenyan start-ups last year. Other startups that secured significant financing include BRCK (which announced additional funding last week), Kopo Kopo, Angaza, BitPesa and Asoko Insight.
Of the 10 sectors monitored in the report, the solar sector saw the most investor activity, accounting for 32.9 per cent of total funds raised. The fintech sector proved a close second, securing 29.6 per cent of the total funds.
“2015 was an exciting year for African tech startups. Our data shows the increasing vibrancy of our ecosystem, with more quality tech startups, and more investor activity than ever before,” said Gabriella Mulligan, co-founder of Disrupt Africa.
“These are impressive numbers, showing real growth in the amount of funding available to African tech startups, but in reality, they are merely the tip of the iceberg,” said Tom Jackson, co-founder of Disrupt Africa.
“There will have been many funding rounds across the continent that have taken place quietly. But in terms of demonstrating the development of the ecosystem, these figures are an excellent starting point. We expect to see further growth in 2016.”
The report also finds Egypt, Ghana, and Tanzania are key hotspots for funding activity; and provides detailed information for each country, including deals per location, average deal sizes and highlights key deals.